duckcalldan
Dryer sheet aficionado
- Joined
- Jan 18, 2016
- Messages
- 41
This question has been discussed many times but, as I am ERing in less than 2 months and starting ACA on March 1, it's a question I'd like to figure out. My wife (age 50) and I (53) with 2 daughters aged 19 and 16. Before the election, I thought I would convert enough of my 750K rollover IRA to stay under 400% FPL and get a HDHP with a HSA (we're all in good health presently). The $6750 HSA deduction would allow me to convert almost $40K to a Roth, pay very little federal tax (we'd get $3500 in child and college tuition tax credits in 2017) and still get a decent ACA subsidy.
Now it's looking like 2017 may be the last year for income-based ACA subsidies. So, since I still have 17 years until RMDs (and I won't likely need my Roth money; I'm setting it up for my heirs), I'm considering foregoing Roth conversion until 2018 and minimizing my income to get a Silver plan with cost sharing and much lower deductibles. One downside: I wouldn't be able to open a HSA.
I know there's much conjecture and, once Trump takes office, we'll have a better picture of what a ACA replacement looks like and if income-based subsidies will continue. But I have to apply for ACA no later than Feb 15 and I will have to estimate my 2017 income. So, if you were in my place, what would you do?
Now it's looking like 2017 may be the last year for income-based ACA subsidies. So, since I still have 17 years until RMDs (and I won't likely need my Roth money; I'm setting it up for my heirs), I'm considering foregoing Roth conversion until 2018 and minimizing my income to get a Silver plan with cost sharing and much lower deductibles. One downside: I wouldn't be able to open a HSA.
I know there's much conjecture and, once Trump takes office, we'll have a better picture of what a ACA replacement looks like and if income-based subsidies will continue. But I have to apply for ACA no later than Feb 15 and I will have to estimate my 2017 income. So, if you were in my place, what would you do?